OGE Energy downgraded to Hold at Argus on ‘modest’ earnings growth outlook

Argus analyst John Eade downgraded OGE Energy to Hold from Buy. The firm remains positive on the company’s visible forward earnings stream, strong cost controls, well-run generation facilities, and relatively high yield, but its near-term earnings and dividend growth are both “modest at best”, the analyst tells investors in a research note. The stock’s valuations are fair, given the modest growth outlook, though the firm may return OGE to a Buy rating if its earnings growth ramps up toward the upper-single-digit range, Argus adds.